Pandora Benefits From Strong Demand in the U.S. as Brand Turnaround Bears Fruit

Pandora is a global branded jeweler and the leader in the charm bracelet category. We believe the firm benefits from its global brand recognition and vast distribution channels, moderately strong pricing power enabled by the charms' low perceived value and recurring purchases, customer loyalty (around 70% of business from repeat buying and over 60% of revenue from gifting, which tends to be more brand-loyal), and cost advantage from manufacturing and purchasing scale.